e-business September 28, 2015 Computers in Manufacturing Enterprises Vandana Srivastava

e-business: Introduction application of information and communication technologies (ICT) in all the activities of business the term "e-business" was coined by IBM's marketing and Internet teams in 1996 business activities are enabled by: –application of internet technologies (intranet, extranets(controlled access from outside of an organization's intranet)) –and related standards (HTTP, HTML, XML etc) looks at all possibilities where electronic communication can be used to enhance all aspects of a company’s SCM and optimize its value-chain

e-business: Basics based on various types of trading partners, there are many categories of e-business: –Business to Business (B2B): automobile manufacturer buying tires, glass for windscreens etc for its vehicles –Business to Consumer (B2C): Flipkart selling books to you –Consumer to Business (C2B): monster.com –Consumer to Consumer (A sells his car to B, eBay), Peer to Peer (P2P, Airbnb), Government to Citizen(G2C: Income Tax portal), Citizen to Government (C2G) and Intra-business (Organization Unit to Organization Unit) main categories of e-business applications: – Electronic markets or e-marketplaces: in buying and selling of goods and services – Inter-organizational systems: facilitating inter and intra-organization flow of goods, services, information, communication, and collaboration –Customer service: providing customer service, help, handling complaints, tracking orders, etc.

Examples: e-business Categories qwerty80.pdf

e-business: Major Success Factors completely integrated Internet technology in company’s strategy basis of competition not shifted from traditional competitive advantage, such as cost, profit, quality, service, and features analyzing buyer behaviour and customer personalization to respond quickly to market needs e-business education and training to employees and management Customer’s and partners’ expectations well-managed tracking new competitors and market shares high quality, simple to use websites that meets or exceed user expectations

Key Expenditures Involved in e-business

e-business: Opportunities REACH refers to potential customers who can be reached internet enables to reach globally at low cost also refers to the number of products and categories covered RICHNESS OF INFORMATION detailed information about products, prices and availability customization based on preferences AFFILIATION better and successful partnership with suppliers Google books: E-Business and E-Commerce Management By Chaffey Dave

e-business: Tangible and Intangible Benefits

e-business VS e-commerce e-business includes e-commerce, Internet marketing, e procurement etc. applications strive to give a good idea of their company, promoting the values they use to market their business transactions involving money are "e-Commerce" activities including the interactions with business partners, customers, vendors e-commerce refers to online transactions - buying and selling of goods and services over the Internet involving transaction of monetary nature subset of E Business. focuses on appearance much more than e-business

Case study in e-business

RS-Components (B2B) Company –one of Europe's leading distributors of electronic and mechanical parts – operates in 22 countries and stocks 500,000 different products from 1,200 suppliers Problem Background –in UK, the company's main sales channel to its 400,000 customers was its 550-page, 5kg catalogue which cost the company £30 per copy to produce – company often send customers, product information sheets, costing between 50p - £5 depending on their location –call centre ordering process was very paperwork intensive, costing average customer £60 per order -> very expensive, as the average order was worth £100 Initiative –company started sending customers CD- Rom versions of its catalogue in

e-business solution: RS Components  started developing its Internet Trading Channel (ITC) in the UK, with the help of e-business software company, Broadvision  site lists products and their specifications, reducing the cost of publishing, updating and distributing catalogues and data sheets  site eliminated the paperwork involved in ordering parts-> reducing the purchasing costs to suppliers  started using personalization technology to know its customers, by storing their purchasing history, preferences and buying habits  moved the UK systems over to a European Internet trading platform and the company will roll out multi-language, multi-currency sites in 10 other European countries  working with e-business platform suppliers such as Oracle, SAP, Ariba and CommerceOne to enable its customers to link their own e-procurement systems in with the RS Components online sales system, and has more than 30 international customers using this service

e-business solution: RS Components Project launched 1998 Cost of Internet Trading Channel project so far is around £5m UK Internet revenues of £30m over the last year (8% of total sales) The site has 250,000 registered users, 97% of them new contacts Site achieves 1200 orders per day The £60 average cost of placing an order has been cut by 80%. Cambridge Consultants, for example, places 7,000 orders, worth £7.5m, per year. It has cut its average order costs from £90 to £10, saving £100,000 per year

Video Case Study eBusiness Advance Case Study - Musselburgh Race Track (

For Further Reading ss.com/2014/05/dave- chaffey-e-business-and-e- commerce-management- strategies-4th-ed- qwerty80.pdf

e-business in India: Growing Sectors Real estate buying, selling, renting Online trading / banking Travel and Tourism Employment sites Government Related gifting sites

Syllabus for Minor 2 Date:8 th October, 2015 Syllabus (lecture slides, case-studies, class discussions and handouts) –extended enterprises –Supply Chain Management –e-business and ERP

Discussion! e-business scenario in India –need? –current situation? –which sectors need to work more on transforming their business? –how are SME’s reaction to e-business? –suggestions?